SAN DIEGO -- May 21, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it has signed a commercial license with ZTE Corporation, a leading manufacturer of telecommunications equipment in China. Under the terms of the royalty-bearing license agreement, Qualcomm has granted ZTE a license under Qualcomm's CDMA patent portfolio to develop, manufacture and sell cdmaOne™ and third-generation (3G) CDMA2000 1x/1xEV network equipment. The license grants ZTE the right to use Qualcomm's technology and integrated circuits to make and sell cdmaOne and CDMA2000 equipment in China and worldwide. ZTE becomes the first company in the People's Republic of China to enter into a commercial license with Qualcomm.
"ZTE was the first manufacturer in the People's Republic of China to enter into an R&D license with Qualcomm for CDMA, so we are especially pleased that ZTE has now become the first commercial licensee there," said Steve Altman, president of Qualcomm Technology Alliances. "ZTE has shown early and consistent leadership in developing products for the CDMA market and has been a strong supporter of the efforts to deploy commercial CDMA networks in the People's Republic of China. Qualcomm looks forward to working even more closely with ZTE to bring commercial CDMA products to the vast market in China for wireless equipment."
The signing of the commercial license between ZTE and Qualcomm brings to fruition a process begun early last year when Qualcomm and China United Telecommunications Corporation, the second largest wireless service provider in China, entered into a Framework Agreement for the licensing of Qualcomm's CDMA intellectual property to Chinese manufacturers. China United Telecommunications Corporation later formed a subsidiary, Unicom Horizon, to operate its CDMA networks. The successful completion of the license negotiations by Qualcomm and ZTE coincides with Unicom Horizon's tender and award of numerous contracts to CDMA equipment manufacturers announced last week, to build a nationwide CDMA mobile phone network in China. ZTE is one of the manufacturers that successfully competed for contract awards.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include CDMA integrated circuits and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications platform; Eudora® e-mail software; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. Qualcomm owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2001 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 24, 2000, and most recent Form 10-Q.